ESPN -1.5%Intercom stock was down by more than 1% after the cable news network reported that the company had been awarded a $300 million federal antitrust award to buy out a competing rival, the New York Times reported.
The transaction, which would have created a joint venture between Comcast and Tribune Communications, is expected to close in early 2019.
The Times said that the deal is expected “to provide a competitive alternative to Comcast’s existing joint venture with Tribune Communications and to provide investors with an even stronger option to buy Comcast stock as part of a single transaction.”
The news comes as Comcast’s share price has been on a tear since the acquisition was announced in March.
Comcast reported quarterly earnings in the fourth quarter of 2019 that showed earnings rose 26% from the same period in 2019, while Tribune reported a loss of $2.9 billion.
ESPN reported that Comcast shares fell about 3% in early trading Tuesday.
The news is another sign that Comcast could be a more attractive deal for investors.
Shares of Comcast, which are up more than 7% so far this year, were up by more of 3.7% over the past year.
The deal would create a combined Comcast-Tribune group that owns Comcast’s cable television and Internet businesses.
The Tribune Group is the largest media group in the U.S. Comcast currently has about 30 million subscribers, which the Times said “are a mix of homes, businesses and businesses of all sizes and from all walks of life.”
Comcast is in the midst of its second-quarter financial report on Wednesday, and it said it expects revenue from those businesses to reach $2 billion for the year.
Comcast is also investing heavily in digital media in its video offerings, including a deal with Hulu to stream the popular shows “Arrested Development” and “The Mindy Project.”